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Contents contributed and discussions participated by Yelena Jakov

Yelena Jakov

Corliss Online Financial Mag, Hong Kong peg voisi vielä toiset 20 vuotta, san... - 1 views

corliss online financial mag Hong Kong peg 'could last another 20 years' says its designer John Greenwood
started by Yelena Jakov on 14 Oct 13 no follow-up yet
Yelena Jakov

Tokyo investors focus on US debt woes by Corliss Online Financial Mag - 1 views

corliss online financial mag Tokyo investors focus on US debt woes
started by Yelena Jakov on 07 Oct 13 no follow-up yet
  • Yelena Jakov

    Tokyo investors will stay focused on the US government shutdown next week, as fears grow it could lead to a devastating debt default and strike a huge blow to the global economy.

    The Nikkei's 0.94 per cent slip on Friday to a one-month low ended a week that saw the benchmark index lose 4.98 per cent, or 735.76 points, to 14,024.31, as the political deadlock in Washington dominated headlines.

    The broader Topix index of all first-section shares fell 4.41 per cent, or 53.70 points, over the week to 1,163.82.

    'Players will keep an eye on the US budget stand-off next week,' said Kenzaburo Suwa, strategist with Okasan Securities.

    'But we may see an early end to the impasse as (President Barack) Obama appears serious by cancelling key conferences overseas,' Suwa added.

    Obama axed plans to attend the Asia Pacific Economic Cooperation (APEC) summit in Bali and the East Asia Summit in Brunei next week, blaming political paralysis in Washington for the cancellation.

    While the shutdown has fuelled jitters among investors, analysts have generally expressed even deeper concerns about the October 17 deadline to raise the US debt ceiling.

    International Monetary Fund chief Christine Lagarde warned on Thursday that a US failure to raise the borrowing limit could wreak havoc on the global economy, while the Treasury Department said a default could have a 'catastrophic' effect.

    On Wall Street, the Dow ended 0.90 per cent lower on Thursday.

    'The deleterious effects of the US government shutdown are already being felt,' SMBC Nikko Securities general manager of equities Hiroichi Nishi told Dow Jones Newswires.

    'The deadlock looks as intractable as ever, and investors are continuing to pull funds out of the dollar and risk assets as a precaution,' he said.

    Japanese Finance Minister Taro Aso on Friday urged Washington to resolve the budget crisis, warning it could seriously damage the global economy.

    'My feeling is ... the debt limit will have an internationally significant impact. Unless it is resolved swiftly, we will see various consequences,' he told reporters in Tokyo.

    The situation was likely to stoke more buying of the safe-haven yen, Aso added, pushing up the unit's value. A strong yen is bad for Japanese exporters as it makes them less competitive overseas and shrinks the value of their repatriated overseas income.

    On Friday, the US dollar was at Y97.12, down from Y97.27 in New York, where the greenback temporarily fell below the Y97 mark on Thursday.

    'Market players will also focus on foreign exchange rates next week as the current risk-averse sentiment is likely to shift fund flows to the yen,' said Suwa at Okasan Securities.

    In Tokyo share trading on Friday, Toyota fell 1.12 per cent to Y6,180 from the previous day, while Sony lost 1.75 per cent to Y2,017.

    Tokyo Electric Power dropped 4.34 per cent to Y528 after Japan's atomic watchdog summoned its boss for a public dressing down over sloppy standards at its crippled Fukushima plant.

    Mobile carrier SoftBank was down 3.45 per cent at Y7,270 on profit-taking after a 15 per cent rally in the past week.

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Yelena Jakov

Corliss Online Financial Mag: Is corporate Singapore being too naive on fraud? - 1 views

    Singaporean corporations are more naive in their approach to anti-fraud and corruption practices in comparison to the Asia-Pacific average, a survey from global accountancy firm Ernst & Young has found. According to the "Building a more ethical business environment survey," only 17 percent of Singaporean respondents acknowledged that planned investments in new markets will expose the company to new risks, compared to an average of around 35 percent for the Asia-Pacific region. "Companies in Singapore don't necessarily lag behind in terms of anti-fraud and corruption practices; what we found is a disconnect between policies that companies already have in place and the enforcement of those policies," said John Tudorovic, fraud investigation and dispute services partner at Ernst & Young. More Economic News:
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